Protect Your Personal Information Choosing the Right Tax Preparer

Introduction

Tax season is here, and the IRS is urging taxpayers to be cautious when selecting a tax preparer. Your tax preparer has access to sensitive financial details, so choosing the right one is crucial to protecting your personal information and ensuring accurate filing. In this edition of our newsletter, we’ll explore key IRS recommendations for selecting a trustworthy tax professional.

Why Choosing the Right Tax Preparer Matters

Each year, millions of taxpayers rely on tax professionals to file their returns accurately. However, hiring an unqualified or fraudulent preparer can lead to mistakes, IRS penalties, or even identity theft. The IRS reminds taxpayers that they are legally responsible for the information on their tax return, even if a preparer completes it.

IRS Tips for Selecting a Reliable Tax Preparer

1. Check Credentials - Look for preparers with recognized credentials, such as Certified Public Accountants (CPAs), Enrolled Agents (EAs), or tax attorneys. The IRS also provides a Directory of Federal Tax Return Preparers with Credentials and Select Qualifications.
2. Verify Their Preparer Tax Identification Number (PTIN) - All tax preparers who charge for their services must have a valid PTIN. Ensure your preparer has an active PTIN before hiring them.
3. Review Their History - Check for any disciplinary actions or licensing issues. Resources like the Better Business Bureau, state boards of accountancy, and the IRS can help verify a preparer’s track record. Understand Their Fee Structure Be wary of preparers who base their fees on a percentage of your refund or who claim they can get you a larger refund than others. A reputable preparer will charge a reasonable, transparent fee.
4. Ensure They E-File - Preparers who file more than ten tax returns must offer e-filing services. This ensures a faster, more secure tax filing process.
5. Never Sign a Blank Return - Avoid tax preparers who ask you to sign a blank or incomplete return. This is a major red flag and could lead to fraud or inaccurate tax filings.
6. Review Your Return Before Signing - Always double-check your return for accuracy and ensure the preparer signs it and includes their PTIN. Keep a copy for your records.

Protect Your Personal Information

Scammers and fraudulent preparers can misuse your personal data. Protect your Social Security number, bank account details, and other sensitive information by working only with trusted tax professionals.

Conclusion

Choosing the right tax preparer is not just about convenience—it’s about safeguarding your financial future. By following the IRS’s guidelines, you can ensure your tax return is accurate and secure. Take the time to research your options, verify credentials, and ask the right questions before hiring a tax professional.

For more insights on tax filing, compliance, and financial best practices, follow our newsletter and stay informed throughout the tax season!